Prime Minister Mark Carney promised to rein in day-to-day government spending and balance the operating budget by 2028-2029, but hasn’t yet defined what that means. The Parliamentary Budget Office says there’s no standard definition of an operating cost, so it can’t say if the new Liberal government is on track. (The Logic)

Talking point: Carney doesn’t plan to table a budget until sometime in the fall. Until now, the federal government combined its capital and operating spending and reported its projected deficits accordingly. Carney says he will continue to run deficits to support capital investments. As it stands, the Budget Office projects the deficit will come in at $46 billion this year—$2.3 billion less than the government estimated in December, thanks to higher-than-expected corporate income tax revenue and counter-tariffs on the U.S.